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Does current economic theory include this common malfeasance among successful dominant businesses as efficient?
by gech 9y ago
Does current economic theory include this common malfeasance among successful dominant businesses as efficient?
- kodablah 9y agoProbably just foretells the rise of competitors as is the case here.
- AndrewKemendo 9y agoCorrect. Rational Choice Theory would expect that sub-optimal or inefficient actions from a single party would drive counterparties to competitive parties.
- computerex 9y agoI don't think current economic theory even takes these common malfeasances into account. This is against the law, and so no widely accepted theory would even acknowledge this.
- digi_owl 9y agoYeah, at best the theory will assume this kind of behavior will be sorted out by competition. At worst it is just blankly ignored completely.
- amptorn 9y agoProbably efficient for Walmart, sure.